Top 100 Firm Being Acquired By McGladrey

According to the Boston Business Journal, Minneapolis-based McGladrey (FY09 net revenue of $1.5 billion), will acquire IPA Top 100 firm, Boston-based Caturano and Company (FY09 net revenue of $67.1 million).

McGladrey signed a letter of intent to acquire Caturano and the deal is subject to board approval by the McGladrey’s parent company, H&R Block Inc. Acquisition talks began in late 2009. 

If approved, the acquisition will put more pressure on industry heavyweights in the Boston marketplace. The Boston-based firm’s turf has been the target of stepped up competition from the Big Four firms, which have courted smaller clients aggressively. If the deal is sealed, McGladrey will have a combined Boston operation of 500 employees and 216 professional staff.

Richard Caturano, Caturano’s CEO estimates the Boston office will generate $100 million in revenue in 2010. Caturano, who will be the MP of the Boston office, says the deal makes sense because he’ll have a national brand for clients who previously passed over Caturano because of its position as a regional firm. “Firms won’t default to the competition because they want a national brand name,” Caturano said. “We have that now.” 

RSM McGladrey Inc. and McGladrey & Pullen LLP announced recently that the two firms will use “McGladrey” as their new brand and logo. The move means the two firms now will market themselves as a single entity, though they will continue to maintain separate incorporations.